PSA joins campaign for higher pay deals

Another big union has opened a fresh front in the war for a larger share of the booming economy, with the Public Service Association pressuring the Government to cough up more in pay rises.

The opening shots of the PSA's "bargaining strategy" are already being fired in talks with the Ministries of Social Development and Agriculture and Forestry.

But as well as seeking a "significant" pay rise - which the PSA won't quantify - it wants an end to performance-based pay systems.

National secretary Richard Wagstaff said yesterday that the Government was told of the new strategy late last year after the PSA board agreed to it in November.

He would not be drawn on how much it might cost the Government.

The PSA has 20,000 members employed in the core public sector and other Crown agencies.

Mr Wagstaff would not put a figure on what "significant" meant, saying it was variable as there were 70 collective agreements with various expiry dates.

The PSA's release follows the launch of an Engineering, Printing and Manufacturing Union "Fair Share 5 in '05" campaign which employer groups have labelled unfair and unrealistic.

Prime Minister Helen Clark was reluctant to comment yesterday on the PSA's strategy nor the desire to axe performance-based pay regimes, saying she did not comment on individual pay rounds.

She noted only that the PSA and Government had signed a "partnership for quality" a few years ago with the shared aim of quality jobs, careers and workplaces.

A Treasury principal adviser Struan Little said it had produced no figures on the cost of the pay drive.

Mr Wagstaff said PSA members knew the Government had a strong fiscal position and wanted their share.

Since 1991 pay movements for public servants had not kept up with increases in other parts of the state sector, particularly health and education. It had also not kept up with the private sector.

He said rises in the 1 per cent to 3 per cent range would not be enough.

As well as significant pay rises the PSA also wants four weeks' leave extended to all members now, without waiting for new provisions giving all workers four weeks' in 2007.

Mr Wagstaff said linking pay to performance was "dubious" and was used too often. "We would like to see pay systems that are less discretionary and based more on experience and skill."

"I think that performance pay was very much a 90s phenomenon and one that came out of the belief in the carrot-stick mentality for management."

He said the PSA's experience of performance pay was that it actually de-motivated staff.

Other demands include better health and safety and career advancement provisions, extending collective coverage to all staff, including managers, and further addressing the gender pay gap.

What the PSA wants

* A "significant" pay rise.

* An end to performance pay systems and managerial discretion in pay decisions.

* Four weeks' annual leave now - not in 2007.

* Five weeks' annual leave for those already getting four weeks after four to five years' service, to maintain the current margin.

* Better collective coverage, including of managers.